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Buying property in Canberra involves several taxes and fees that significantly impact your total cost.
As Australia's capital, Canberra operates under unique ACT legislation with specific rates, exemptions, and calculation methods that differ from other states. Understanding these costs upfront allows you to budget accurately and take advantage of available concessions.
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Property purchases in Canberra involve conveyance duty (stamp duty), annual rates based on unimproved land value, land tax for non-principal residences, title registration fees, and various settlement costs.
As of September 2025, first-home buyers can receive full duty exemptions for properties up to $1,020,000, while owner-occupiers benefit from reduced rates starting at $0.28 per $100 for properties under $260,000.
| Tax/Fee Category | Rate/Amount (2025) | Who Pays |
|---|---|---|
| Conveyance Duty (Owner-Occupier) | $0.28-$5.50 per $100 | Property buyers |
| Title Transfer Registration | $479 | Property buyers |
| Mortgage Registration | $178 | Property buyers (if borrowing) |
| Annual General Rates | Based on unimproved land value | All property owners |
| Land Tax | $1,693 fixed charge + variable rates | Non-principal residence owners |
| Water Supply Charge | $243.47 annually | All connected properties |
| Sewerage Charge | $617.21 annually | All connected properties |
What's your expected purchase price and planned settlement month for calculating ACT conveyance duty?
The purchase price and settlement date determine your exact conveyance duty calculation and any pro-rated charges at settlement.
As of September 2025, ACT conveyance duty rates for owner-occupiers start at $0.28 per $100 or part thereof for properties valued up to $260,000, increasing progressively to $5.50 per $100 for properties over $1,455,000. The exact amount depends on your property value and ownership type.
Settlement month affects pro-rations for rates, land tax, and utility charges. If you settle mid-quarter, you'll pay proportional amounts for services like water and sewerage charges from your settlement date. Water supply charges are $243.47 annually, while sewerage charges are $617.21 annually as of 2025-26.
For a $500,000 owner-occupied property settling in September 2025, you'd pay approximately $8,720 in conveyance duty. This amount must be paid within 14 days of lodging your title registration notice with ACT Revenue Office.
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Are you buying as an owner-occupier, investor, or vacant land, and in what ownership structure?
Your buyer status and ownership structure significantly impact duty rates, land tax liability, and ongoing tax obligations in the ACT.
Owner-occupiers receive preferential conveyance duty rates starting at $0.28 per $100 for properties up to $260,000, compared to higher investor rates. You must live in the property as your principal residence for at least 12 months to qualify for these rates.
Investors and vacant land purchasers pay standard conveyance duty rates without owner-occupier concessions. Investment properties are also subject to ACT land tax, which includes a fixed charge of $1,693 plus variable rates based on the property's average unimproved value over five years.
Company and trust purchases may attract different duty treatment and reporting requirements. Individual ownership typically offers the most straightforward tax treatment, while corporate structures may provide asset protection but potentially higher duty rates and compliance costs.
Are you eligible for first-home buyer or other ACT duty concessions?
The ACT Home Buyer Concession Scheme offers substantial savings for eligible first-home buyers and those who haven't owned property in five years.
| Household Income Threshold | Number of Dependent Children | Maximum Property Value for Full Exemption |
|---|---|---|
| $160,000 | 0 | $1,020,000 |
| $175,000 | 1 | $1,020,000 |
| $190,000 | 2 | $1,020,000 |
| $205,000 | 3 | $1,020,000 |
| $220,000 | 4+ | $1,020,000 |
Eligible buyers receive full duty exemption for properties up to $1,020,000 and partial concessions up to $1,455,000, saving up to $35,238 in duty. All buyers must be at least 18 years old, and at least one must live in the property for 12 months within the first year after settlement.
Additional concessions include the Pensioner Duty Assistance Scheme and Disability Duty Concession Scheme, both offering full exemptions for eligible applicants purchasing properties up to $1,020,000.
What's the property type and condition for determining applicable rates?
Property type and condition affect duty rates, exemptions, and ongoing charges in the ACT.
Established houses, townhouses, and apartments are subject to standard conveyance duty rates based on their purchase price. Brand-new properties may qualify for additional concessions under certain schemes, while off-the-plan purchases can access specific exemptions and payment deferrals.
Vacant land purchases attract the same duty rates as built properties but may have different settlement and construction-related conditions for concession schemes. Land purchases are also subject to potential lease variation charges if development approvals are required.
Strata-titled properties (apartments and townhouses) incur additional body corporate fees ranging from $1,500 to $4,000 annually for townhouses and $2,000 to $4,000 for apartments, depending on facilities and building size. These fees cover common area maintenance, insurance, and management.
What's the current unimproved land value for estimating annual ACT rates?
Annual ACT general rates are calculated using the property's average unimproved value (AUV) over the past five years, not the purchase price.
The AUV for 2025-26 is the average of unimproved values from January 1, 2021, through January 1, 2025. This value appears on your rates notice and property listings, typically ranging from 60-80% of improved property values in Canberra.
Rates consist of a fixed charge plus a variable charge calculated by applying rating factors to your AUV. The fixed charge includes a $100 health levy for residential properties. Variable rates differ by property type, with residential properties generally paying lower rates per dollar of AUV than commercial properties.
For a typical Canberra residential property with an AUV of $400,000, annual rates would be approximately $3,200 to $4,000, including the fixed charges and variable component. This amount is payable quarterly and covers essential services like hospitals, schools, roads, and waste collection.
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Will the property be rented, and what's the expected annual land tax?
Properties that are not your principal place of residence are subject to ACT land tax, assessed quarterly on January 1, April 1, July 1, and October 1.
Land tax applies to residential properties that are rented, vacant investment properties, holiday homes, and properties owned by trusts or companies. The tax consists of a fixed charge of $1,693 plus variable rates applied to the property's average unimproved value over five years.
For 2025-26, variable land tax rates are applied in tiers based on the AUV. Properties with higher unimproved values attract progressively higher percentage rates. A typical investment property with an AUV of $500,000 would incur approximately $3,500 to $4,500 annually in land tax.
Non-resident foreign owners pay an additional foreign ownership surcharge on top of standard land tax rates. You must notify ACT Revenue within 30 days if your property becomes liable for land tax, with penalties applying for late notification.
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What Land Titles Office fees apply for title transfers and mortgage registration?
ACT Land Titles Office charges specific fees for property transaction registrations, updated annually and payable at settlement.
| Service | Fee (2025) | Description |
|---|---|---|
| Transfer Registration | $479.00 | Property ownership transfer |
| Mortgage Registration | $178.00 | Lender security interest registration |
| Discharge of Mortgage | $178.00 | Removing mortgage when loan paid |
| Caveat Registration | $348.00 | Protecting interest in property |
| Certificate of Title | Varies | Official ownership document |
These fees are mandatory for all property transactions and are typically paid by your conveyancer at settlement. Transfer registration ($479) is required for every property sale, while mortgage registration ($178) applies only if you're borrowing money secured by the property.
Additional fees may apply for complex transactions involving multiple mortgages, caveats, or special registrations. Your conveyancer will itemize these costs in their pre-settlement statement.
Do you need a loan, and what additional costs apply?
Home loans involve multiple fees beyond Land Titles Office charges, including lender application fees, valuation costs, and potential mortgage insurance.
Typical lender fees include application fees ($300-$800), valuation fees ($200-$500), and settlement fees ($150-$300). If your deposit is less than 20% of the property value, you'll need Lenders Mortgage Insurance (LMI), which can cost $1,000 to $20,000 depending on loan amount and deposit percentage.
For a $400,000 loan with a 10% deposit, LMI might cost approximately $8,000 to $12,000. This cost can be added to your loan amount but increases your total interest payments over the loan term.
Some lenders offer low deposit loans with reduced LMI through government schemes or professional packages. Mortgage brokers can help compare options and may charge fees of $2,000 to $4,000, though many are paid by lenders without cost to borrowers.
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What are your conveyancer or solicitor fees for an ACT purchase?
Professional legal services are essential for ACT property transactions, with fees varying based on property complexity and service provider.
Conveyancer fees typically range from $800 to $2,000 for straightforward residential purchases, while solicitor fees may be $1,500 to $3,500 for more complex transactions. These fees include contract review, searches, settlement attendance, and document preparation.
Additional disbursements include property searches ($150-$400), certificate fees, and bank cheques. The Certificate of Rates, Land Tax and Other Charges costs $143 and shows outstanding amounts on the property at settlement.
Strata property purchases may require additional searches and certificates, increasing total costs by $200 to $500. Your legal representative should provide a detailed cost estimate before engagement, including all anticipated disbursements.
What are the strata levies for units and townhouses?
Strata-titled properties in Canberra require quarterly body corporate levies to fund common area maintenance and building management.
1. **Administrative Fund Levies:** Cover daily expenses like cleaning, gardening, insurance, and management fees2. **Sinking Fund Levies:** Fund major capital works like roof repairs, painting, and equipment replacement 3. **Special Levies:** Address unexpected expenses or major building improvements4. **Management Fees:** Professional strata management services (approximately 10% of total levies)5. **Insurance Premiums:** Building and public liability coverage for common areasAnnual levies typically range from $1,500 for simple townhouse complexes to $4,000+ for apartment buildings with extensive facilities like pools, gyms, and concierge services. Older buildings may have higher maintenance costs, while newer complexes might have lower immediate costs but higher sinking fund contributions.
Before purchasing, request recent body corporate financial statements and meeting minutes to understand current levy amounts and any planned special levies. Large capital works projects can result in significant one-off charges of $5,000 to $20,000 per unit.
What council and utility charges apply at settlement and annually?
Council rates and utility services create ongoing annual costs that are pro-rated at settlement based on your settlement date.
As of 2025-26, annual utility charges include water supply ($243.47), sewerage services ($617.21), and usage charges for actual water consumption. Council rates vary by property value but typically range from $2,500 to $5,000 annually for residential properties.
The Safer Families Levy adds $60 annually to support family violence prevention services. Properties in certain areas may also pay fire and emergency services levies through their insurance or directly to government.
At settlement, these charges are adjusted so you pay from your settlement date forward. For a property settling mid-quarter, you'd pay approximately 75% of the quarterly charges. Your conveyancer calculates these pro-rations and includes them in settlement figures.
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What additional ACT charges might apply to your specific situation?
Several specialized charges may apply depending on your property type, development plans, or specific circumstances.
Lease Variation Charges apply when changing permitted land uses or increasing dwelling density. As of 2025, the charge for unit titling variations is $46,000 per additional unit. These charges are based on the benefit the variation provides to your property value.
Properties under the Land Rent Scheme pay annual rent instead of purchasing land outright. The relevant percentage is 3.84% of the property's unimproved value, with base threshold amounts varying by lease date.
Development Application fees vary by proposal complexity, ranging from $500 for minor alterations to $50,000+ for major commercial developments. Infrastructure contribution schemes may require additional payments for new developments in certain areas.
Foreign ownership surcharges add 0.75% conveyance duty for non-resident buyers of residential property. This applies to the purchase price or property value, whichever is higher, and is in addition to standard conveyance duty.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Canberra's property taxes and fees is crucial for accurate budgeting and avoiding unexpected costs during your purchase.
The ACT's unique territory status creates specific rates and exemptions that can significantly impact your total investment, particularly through first-home buyer concessions and ongoing land tax obligations.